Databricks valuation exceeds USD 100 billion after latest funding round

Databricks, the company founded by the original creators of Apache Spark, announced it has signed a term sheet for a Series K funding round that values the company at over USD 100 billion. The funding is expected to close soon, with support from existing investors. The new capital will be used to advance the company's AI strategy.

The company plans to use the funds to expand its product offerings, including Agent Bricks and Lakebase, and to support global expansion. The investment will also help fund future AI acquisitions and deepen research efforts.

At the June Data + AI Summit, Databricks launched Agent Bricks, a product designed to build production AI agents using enterprise data. It also introduced Lakebase, a new operational database built on open-source Postgres, created for AI agents.

The investment follows recent business growth for Databricks. In the last six months, the company has launched or expanded its partnerships with Microsoft, Google Cloud, Anthropic, SAP, and Palantir. More than 15,000 customers globally use the Databricks Data Intelligence Platform. The platform, built on an open-source foundation, helps organisations with data analytics and AI applications.

The company's journey to this valuation has been marked by a focus on its "lakehouse" architecture, which combines the flexibility of data lakes with the reliability of data warehouses. This approach has allowed Databricks to provide a unified platform for data analytics and AI. The foundation of this strategy is built on open-source technologies that have become industry standards.

Key acquisitions and product growth

Databricks has used significant acquisitions to expand its capabilities and secure its market position. These strategic moves have brought new technology and talent to the company, directly contributing to its revenue and product strength.

• MosaicML (2023): In a key move to push its AI capabilities, Databricks acquired generative AI startup MosaicML for approximately USD 1.3 billion. MosaicML's platform specialized in helping companies build, train, and deploy large language models (LLMs) cost-effectively. This acquisition brought a strong research team and a platform that enabled customers to create and own their AI models using their own data. This technology is a core component of Databricks' current AI strategy, directly leading to the development of new AI-focused products.
• Arcion (2023): Databricks acquired Arcion, a data replication startup, for over USD 100 million. Arcion's technology helps companies ingest data from various databases and software applications into the Databricks Lakehouse Platform. This move simplified a critical step for customers, making it easier for them to get data onto the platform quickly. It removed a major barrier for new clients and expanded Databricks' reach into operational data sources.
• Tabular (2024): In a deal valued at over USD 1 billion, Databricks acquired Tabular, a data management company created by the original founders of Apache Iceberg. This acquisition was a response to the growing competition in the open-source data space. By bringing the creators of both Delta Lake (Databricks’ own format) and Apache Iceberg under one roof, Databricks aims to create a more unified, open standard for the industry. This move reinforced the company’s commitment to an open ecosystem and directly challenged competitors like Snowflake.

These acquisitions were part of a broader push to accelerate Databricks' platform. The company has also made strides with its own product launches. For instance, its data warehousing product, Databricks SQL, hit over USD 400 million in annual recurring revenue within a year of its launch. This product's success demonstrates the strong demand for the company’s services.